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Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has reiterated his commitment to aligning his economic policies with the ongoing International Monetary Fund (IMF) programme aimed at stabilizing Ghana’s economy.
This reaffirmation comes in response to concerns from some economic analysts regarding the potential impact of his proposed policies—such as the elimination of the e-levy, the introduction of a tax amnesty, and the establishment of a flat tax regime—on the country’s revenue and the effectiveness of the IMF-supported stabilization efforts.
Addressing these concerns during a media interaction on Sunday, August 25, Dr. Bawumia emphasized that his administration would prioritize both economic growth and fiscal discipline. He assured that his policy proposals would not only complement the IMF’s objectives but also address Ghana’s economic challenges.
“I don’t see any inconsistency at all between what I am proposing and the Fund programme that we are engaged in. If you read my proposals very carefully, I start by saying we are going to bring down government expenditure by 3% of GDP. The proposals in terms of the tax cuts I am proposing will not even come up to 0.5% of GDP,” Dr. Bawumia explained. “So you have more than enough space to fund what I am talking about. I think the issue at the end of the day for the programme is to make sure we maintain fiscal sustainability.”
He further proposed an amendment to the Fiscal Responsibility Act to establish an independent Fiscal Responsibility Council, similar to the Monetary Policy Committee of the Bank of Ghana. This council would oversee fiscal responsibility with a stricter fiscal rule, ensuring that government expenditure does not exceed 105% of the previous year’s tax revenue.
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